Penobscot Investment Management Company Inc. Sells 965 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Penobscot Investment Management reduced its stake in Automatic Data Processing by 2.1%, selling 965 shares and holding a total of 45,195 shares valued at approximately $13.9 million.
• Multiple analysts have adjusted their price targets for ADP, with Mizuho increasing the target from $321 to $332, while UBS Group lowered the target from $315 to $290.
• The company plans to provide a quarterly dividend of $1.54, leading to an annualized dividend yield of 2.1% and a payout ratio of 61.72%.

Penobscot Investment Management Company Inc. trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.1% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 45,195 shares of the business services provider's stock after selling 965 shares during the period. Automatic Data Processing makes up 1.2% of Penobscot Investment Management Company Inc.'s investment portfolio, making the stock its 21st largest holding. Penobscot Investment Management Company Inc.'s holdings in Automatic Data Processing were worth $13,938,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in ADP. Activest Wealth Management boosted its position in shares of Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after acquiring an additional 78 shares during the last quarter. Clarity Asset Management Inc. bought a new stake in shares of Automatic Data Processing in the 1st quarter valued at about $29,000. von Borstel & Associates Inc. acquired a new stake in Automatic Data Processing in the 1st quarter worth approximately $30,000. Y.D. More Investments Ltd purchased a new position in shares of Automatic Data Processing during the 1st quarter valued at approximately $35,000. Finally, Abound Wealth Management increased its holdings in Automatic Data Processing by 58.1% in the 1st quarter. Abound Wealth Management now owns 117 shares of the business services provider's stock worth $36,000 after acquiring an additional 43 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Mizuho increased their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Stifel Nicolaus raised their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. UBS Group dropped their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a research note on Wednesday, September 17th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Automatic Data Processing in a research report on Saturday, September 27th. Three analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, Automatic Data Processing presently has an average rating of "Hold" and a consensus price target of $316.70.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $291.31 on Friday. The company's 50 day simple moving average is $299.08 and its 200 day simple moving average is $303.37. The stock has a market capitalization of $118.01 billion, a price-to-earnings ratio of 29.19, a price-to-earnings-growth ratio of 2.65 and a beta of 0.82. Automatic Data Processing, Inc. has a 1 year low of $272.62 and a 1 year high of $329.93. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The company had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the previous year, the firm posted $2.09 earnings per share. Automatic Data Processing's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th were given a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Friday, September 12th. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Foskett sold 1,373 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $407,190.61. Following the completion of the sale, the vice president directly owned 11,781 shares of the company's stock, valued at approximately $3,493,891.17. This represents a 10.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the completion of the sale, the vice president directly owned 17,536 shares of the company's stock, valued at $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock worth $15,632,410 in the last ninety days. 0.20% of the stock is owned by corporate insiders.

Automatic Data Processing Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

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